FxWirePro: NZD/USD breaks below 61.8% Fib, good to go short on rallies

• NZD/USD breaks below 61.8% Fib at 0.7031, momentum bearish, bias lower.
   
• The major has edged higher from 19-week lows at 0.6990 and is currently trading at 0.7008 levels.
   
• Minor recovery attempts capped below 61.8% Fib as USD remains bid into FOMC meeting due later today.
   
• The Fed is expected to hold steady, but markets are pricing in a further rate hike within the next few months.
   
• A hawkish outcome could push the USD higher across the board, weighing further on the pair.
   
• Next major bear target lies at 0.6954 (Dec 20 lows) ahead of 0.6920 (78.6% Fib).
   
• On the flipside, 5-DMA is immediate resistance, break above will see minor upside. Bearish invalidation only above 200-DMA.

Support levels - 0.6954 (Dec 20 low), 0.6920 (78.6% Fib), 0.69

Resistance levels - 0.7031 (61.8% Fib), 0.7039 (5-DMA), 0.7108 (50% Fib)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-breaks-below-200-DMA-eyes-618-Fibos-at-07031-stay-short-1269595) has hit all targets.

Recommendation: Good to go short on rallies around 0.7010/20, SL: 0.71, TP: 0.6955/ 0.6920/ 0.69

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -4.19321 (Neutral), while Hourly USD Spot Index was at 97.671 (Bullish) at 0500 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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